Copart, Inc.
For Immediate Release
Copart Reports Second Quarter Fiscal 2015 Financial Results
Dallas, Texas. (February 24, 2015) — Copart, Inc. (NASDAQ: CPRT) today reported financial results for the quarter and six months ended January 31, 2015.
For the three months ended January 31, 2015, revenue, gross margin and net income were $276.3 million, $114.9 million and $52.2 million, respectively. These represent a decrease in revenue of $10.2 million, or 3.6%; and increases in gross margin of $3.3 million, or 3.0%; and in net income of $6.8 million, or 15.1%, respectively, from the same quarter last year. Fully diluted earnings per share for the three months were $0.40 compared to $0.35 last year, an increase of 14.3%.
For the six months ended January 31, 2015, revenue, gross margin and net income were $566.6 million, $237.2 million and $104.8 million, respectively. These represent increases in revenue of $0.3 million, or 0.1%; in gross margin of $17.8 million, or 8.1%; and in net income of $18.0 million, or 20.8%, respectively, from the same period last year. Fully diluted earnings per share for the six months were $0.80 compared to $0.66 last year, an increase of 21.2%.
On Wednesday, February 25, 2015, at 11 a.m. Eastern time, Copart will conduct a conference call to discuss the results for the quarter. The call will be webcast live athttp://stream.conferenceamerica.com/copart/022515. A replay of the call will be available through April 26, 2015 by calling(877) 919-4059. Use confirmation code #51385268.
About Copart
Copart, founded in 1982, provides vehicle sellers with a full range of remarketing services to process and sell salvage and clean title vehicles to dealers, dismantlers, rebuilders, exporters and, in some states, to end users. Copart remarkets the vehicles through Internet sales utilizing its VB3 technology. Copart sells vehicles on behalf of insurance companies, banks, finance companies, fleet operators, dealers, car dealerships and others as well as cars sourced from the general public. The company currently operates in the United States and Canada (www.copart.com), the United Kingdom (www.copart.co.uk), Brazil (www.copart.com.br), Germany (www.copart.de), the United Arab Emirates (www.copart.ae), and Spain (www.autoresiduos.com). Copart links sellers to more than 750,000 members in over 150 countries worldwide through its multi-channel platform. Copart was recently ranked at the top of Deloitte’s “Exceptional 100” list of companies, which reviewed U.S. publicly traded companies based upon a multidimensional approach to measuring financial performance. For more information, or to become a member, visitwww.copart.com.
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
Cautionary Note About Forward-Looking Statements
This press release contains forward-looking statements within the meaning of federal securities laws, and these forward-looking statements are subject to substantial risks and uncertainties. These forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected or implied by our statements and comments. For a more complete discussion of the risks that could affect our business, please review the “Management's Discussion and Analysis” and the other risks identified in Copart’s latest Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K, as filed with the Securities and Exchange Commission. We encourage investors to review these disclosures carefully. We do not undertake to update any forward-looking statement that may be made from time to time on our behalf.
| Contact: | Wendy Lucero, Assistant to the Chief Financial Officer |
| 972-391-5043 or wendy.lucero@copart.com |
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
Copart, Inc.
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)
| Three Months Ended | | Six Months Ended |
| January 31, | | January 31, |
| 2015 | | 2014 | | 2015 | | 2014 |
| Service revenues and vehicle sales: | | | | | | | | | | | | | | | |
| Service revenues | $ | 238,508 | | | $ | 235,732 | | | $ | 485,128 | | | $ | 462,095 | |
| Vehicle sales | | 37,750 | | | | 50,702 | | | | 81,516 | | | | 104,222 | |
| Total service revenues and vehicle sales | | 276,258 | | | | 286,434 | | | | 566,644 | | | | 566,317 | |
| Operating expenses: | | | | | | | | | | | | | | | |
| Yard operations | | 120,181 | | | | 121,240 | | | | 241,780 | | | | 236,466 | |
| Cost of vehicle sales | | 32,118 | | | | 43,642 | | | | 69,191 | | | | 89,733 | |
| Yard depreciation and amortization | | 8,543 | | | | 9,460 | | | | 17,403 | | | | 19,555 | |
| Yard stock-based payment compensation | | 549 | | | | 546 | | | | 1,095 | | | | 1,181 | |
| Gross margin | | 114,867 | | | | 111,546 | | | | 237,175 | | | | 219,382 | |
| General and administrative | | 27,587 | | | | 31,221 | | | | 60,804 | | | | 65,456 | |
| General and administrative depreciation and amortization | | 2,857 | | | | 3,615 | | | | 5,727 | | | | 8,025 | |
General and administrative stock-based | | | | | | | | | | | | | | | |
| payment compensation | | 3,955 | | | | 5,226 | | | | 7,775 | | | | 9,458 | |
| Total operating expenses | | 195,790 | | | | 214,950 | | | | 403,775 | | | | 429,874 | |
| Operating income | | 80,468 | | | | 71,484 | | | | 162,869 | | | | 136,443 | |
| Other (expense) income: | | | | | | | | | | | | | | | |
| Interest expense, net | | (4,505 | ) | | | (2,066 | ) | | | (6,276 | ) | | | (4,203 | ) |
| Other income, net | | 4,141 | | | | 1,170 | | | | 5,734 | | | | 2,593 | |
| Total other expense | | (364 | ) | | | (896 | ) | | | (542 | ) | | | (1,610 | ) |
| Income before income taxes | | 80,104 | | | | 70,588 | | | | 162,327 | | | | 134,833 | |
| Income taxes | | 27,911 | | | | 25,243 | | | | 57,519 | | | | 48,066 | |
| Net income | $ | 52,193 | | | $ | 45,345 | | | $ | 104,808 | | | $ | 86,767 | |
| |
| Basic net income per common share | $ | 0.41 | | | $ | 0.36 | | | $ | 0.83 | | | $ | 0.69 | |
| Weighted average common shares outstanding | | 126,300 | | | | 125,564 | | | | 126,258 | | | | 125,512 | |
| |
| Diluted net income per common share | $ | 0.40 | | | $ | 0.35 | | | $ | 0.80 | | | $ | 0.66 | |
| Diluted weighted average common shares outstanding | | 131,872 | | | | 131,101 | | | | 131,694 | | | | 130,904 | |
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
Copart, Inc.
Consolidated Balance Sheets
(In thousands)
(Unaudited)
| January 31, | | July 31, |
| 2015 | | 2014 |
| ASSETS | | | | | | | |
| | | | | | | | |
| Current assets: | | | | | | | |
| Cash and cash equivalents | $ | 590,366 | | | $ | 158,668 | |
| Accounts receivable, net | | 235,477 | | | | 196,985 | |
| Vehicle pooling costs and inventories | | 34,106 | | | | 31,697 | |
| Income taxes receivable | | 7,803 | | | | 2,288 | |
| Deferred income taxes | | 2,769 | | | | 1,803 | |
| Prepaid expenses and other assets | | 17,904 | | | | 20,850 | |
| Total current assets | | 888,425 | | | | 412,291 | |
| Property and equipment, net | | 688,244 | | | | 692,383 | |
| Intangibles, net | | 21,425 | | | | 25,242 | |
| Goodwill | | 270,492 | | | | 283,780 | |
| Deferred income taxes | | 37,524 | | | | 36,721 | |
| Other assets | | 45,961 | | | | 56,387 | |
| Total assets | $ | 1,952,071 | | | $ | 1,506,804 | |
| |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | | | |
| Current liabilities: | | | | | | | |
| �� Accounts payable and accrued liabilities | $ | 148,180 | | | $ | 152,156 | |
| Deferred revenue | | 4,515 | | | | 4,170 | |
| Income taxes payable | | 5,858 | | | | 8,284 | |
| Current portion of long-term debt and capital lease obligations | | 76,171 | | | | 79,674 | |
| Total current liabilities | | 234,724 | | | | 244,284 | |
| Deferred income taxes | | 6,324 | | | | 7,372 | |
| Income taxes payable | | 25,499 | | | | 23,771 | |
| Long-term debt and capital lease obligations, net of discount | | 608,236 | | | | 223,227 | |
| Other liabilities | | 4,051 | | | | 4,651 | |
| Total liabilities | | 878,834 | | | | 503,305 | |
| Commitments and contingencies | | | | | | | |
| Stockholders’ equity: | | | | | | | |
| Preferred stock | | — | | | | — | |
| Common stock | | 13 | | | | 13 | |
| Additional paid-in capital | | 416,958 | | | | 404,542 | |
| Accumulated other comprehensive loss | | (66,525 | ) | | | (20,060 | ) |
| Retained earnings | | 722,791 | | | | 619,004 | |
| Total stockholders’ equity | | 1,073,237 | | | | 1,003,499 | |
| Total liabilities and stockholders’ equity | $ | 1,952,071 | | | $ | 1,506,804 | |
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
Copart, Inc.
Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
| Six Months Ended |
| January 31, |
| 2015 | | 2014 |
| Cash flows from operating activities: | | | | | | | |
| Net income | $ | 104,808 | | | $ | 86,767 | |
Adjustments to reconcile net income to net cash provided by operating
activities: | | | | | | | |
| Depreciation and amortization | | 25,367 | | | | 27,580 | |
| Allowance for doubtful accounts | | (242 | ) | | | 884 | |
| Stock-based payment compensation | | 8,870 | | | | 10,639 | |
| Excess tax benefits from stock-based payment compensation | | (534 | ) | | | (1,171 | ) |
| Gain on sale of property and equipment | | (457 | ) | | | (1,743 | ) |
| Deferred income taxes | | (2,317 | ) | | | (5,982 | ) |
| Changes in operating assets and liabilities, net of effects from acquisitions: | | | | | | | |
| Accounts receivable | | (40,908 | ) | | | (38,928 | ) |
| Vehicle pooling costs and inventories | | (3,351 | ) | | | (1,718 | ) |
| Prepaid expenses and other current assets | | 1,747 | | | | (4,266 | ) |
| Other assets | | 5,368 | | | | (12,602 | ) |
| Accounts payable and accrued liabilities | | (4,173 | ) | | | 7,724 | |
| Deferred revenue | | 351 | | | | 347 | |
| Income taxes receivable | | (4,938 | ) | | | 4,799 | |
| Income taxes payable | | 103 | | | | 1,494 | |
| Other liabilities | | (811 | ) | | | 1,967 | |
| Net cash provided by operating activities | | 88,883 | | | | 75,791 | |
| |
| Cash flows from investing activities: | | | | | | | |
Purchases of property and equipment including acquisitions, net of cash
acquired | | (39,459 | ) | | | (65,996 | ) |
| Proceeds from sale of property and equipment | | 742 | | | | 2,576 | |
| Net cash used in investing activities | | (38,717 | ) | | | (63,420 | ) |
| |
| Cash flows from financing activities: | | | | | | | |
| Proceeds from the exercise of stock options | | 2,303 | | | | 4,550 | |
| Excess tax benefit from stock-based payment compensation | | 534 | | | | 1,171 | |
| Proceeds from the issuance of Employee Stock Purchase Plan shares | | 1,495 | | | | 1,115 | |
| Principal payments on long-term debt | | (312,500 | ) | | | (37,500 | ) |
| Proceeds from the issuance of long-term debt, net of discount | | 698,939 | | | | — | |
| Debt offering costs | | (955 | ) | | | — | |
| Change in bank overdraft | | — | | | | 743 | |
| Repurchases of common stock | | (1,121 | ) | | | (80 | ) |
| Net cash provided by (used in) financing activities | | 388,695 | | | | (30,001 | ) |
| |
| Effect of foreign currency translation | | (7,163 | ) | | | 198 | |
| |
| Net increase (decrease) in cash and cash equivalents | | 431,698 | | | | (17,432 | ) |
| |
| Cash and cash equivalents at beginning of period | | 158,668 | | | | 63,631 | |
| Cash and cash equivalents at end of period | $ | 590,366 | | | $ | 46,199 | |
| |
| Supplemental disclosure of cash flow information: | | | | | | | |
| Interest paid | $ | 3,788 | | | $ | 4,495 | |
| Income taxes paid, net of refunds | $ | 64,432 | | | $ | 47,891 | |
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Copart, Inc. ~ 14185 Dallas Parkway, Suite 300, Dallas TX 75254 ~ (972) 391-5000
